Letter 2 - General Authorisation Conditions Letter

Letter 2 - General Authorisation Conditions Letter

[The letter below must also be issued to all traders authorised for CFSP. The conditions are mandatory and cannot be varied.]

[N.B. Officers are required, in relation to the removal of goods from Temporary Storage, to formulate an agreement with the trader (see CFSP04250, CFSP16100 and Letter 4A).]

(Name and address of authorised party)

(date)

Dear Sir/Madam*,

We hereby enclose the General Authorisation and relevant Letter(s) to enable you to operate the Simplified Procedures for which you have applied.

You must also comply with the additional requirements to operate these procedures as detailed below:

maintain a regular pattern of Third Country declarations, against your Trader’s Unique Reference Number (TURN);

ensure that any data processed is accurate and complete;
hold authorisations for the other customs procedures to which you wish to enter goods using the Simplified Procedures. Where there is an existing requirement as stated in the authorisation of a customs procedure, record the required details in the records;
Endorse the preference certificate/Documentary Proof of Origin (DPO) with the DUCR and the date of the claim. You may retain the certificate although it should be made available to Revenue & Customs on request. Original certificates must be retained;
notify Customs of any changes in your computer hardware or software, or the route by which you submit your supplementary declarations;
report and correct any errors found after the FSD for the period has been submitted: For advice on who to report errors to please contact the CFSP National Assurance Team (CNAT) on 0113 389 4492; and
report the details of any supplementary declarations which you have been unable to submit by the due date as follows:-

Advise by fax or e-mail to the address below details of the following;

the authorised CFSP trader’s TURN and Deferment Account Number (DAN);
the month in question;
the total number of SDI/SDWs not submitted in time;
the total amount of revenue due but not paid on the outstanding SDI/SDWs, broken down into customs duty, excise duty and VAT as applicable; and
the sender’s name and position within the business, to :-

HM Revenue & Customs, CFSP National Assurance Team (CNAT), Peter Bennett House, Redvers Close, Leeds, LS16 6RQ

Fax number: 0113 389 4490

E-mail:

This information must also be provided by the fourth working day deadline.

Customs will then arrange for this amount to be debited to your deferment account. You will still be required to submit all the outstanding SDI/SDWs within such time as an officer may allow. When this has been done you will again need to fax or e-mail Customs with the following information:

the authorised CFSP trader’s name, TURN and DAN;
the month in question;
the number of previously outstanding SDI/SDWs now submitted;
the total amount of revenue due, broken down as above;
list of entry numbers relating to the SDI/SDWs; and
the sender’s name and position within the business;

Customs will then credit your deferment account with the amount of revenue initially paid to avoid you having to pay twice.

You must:

hold and maintain a set of commercial records and declarations for the goods declared via these procedures as specified in the Customs Traders (Accounts and Records) Regulations 1995, SI 1995/1203;
maintain a system in support of the records kept which:

a)establishes their relationship to the declarations made; and

b)is sufficient to enable Customs to carry out effective checks on compliance with import prohibitions or restrictions or any other provisions governing release to free circulation or other customs procedures, of goods covered by this authorisation;

monitor that the security provided to Customs in respect of this authorisation is sufficient to cover your liabilities at all times. If the security is found to be insufficient you must take immediate action to increase it accordingly;
keep an archive of all declarations made for 4 years after the date of their submission and make this available to Customs on request (other legislation e.g. VAT, Excise or Company taxation, may specify that this information must be kept for longer periods);
allow Customs to audit your system when requested, providing customs staff with access to suitable office, toilet and car parking facilities, free of charge;

*[the following must be included for an Indirect Representative:]

You must maintain an up-to-date list of customers on whose behalf you act as an Indirect Representative. This should include their correct legal entity, TURN, and deferment number. The declaration regarding the type of representation must be shown in box 14.

[The following sections relate to individual procedures and requirements, which should be included/ deleted as appropriate.]

*Simplified Declaration Procedure to Customs Warehousing

either be authorised as a Customs Warehouse (Type A, C, D or E) with the provision to use simplified declaration included in the warehouse authorisation; or
as an indirect representative (agent) or depositor, enter goods to a Customs warehouse that has provision to receive goods by way of SDP included in the warehouse authorisation.

*Local Clearance

provide safe working conditions for all Customs staff attending the premises (this includes safe means of access to containers and/ or vehicles) and the working conditions must meet the standards set by the safety authorities;
If you intend to enter goods to Customs Warehousing following their release from Temporary Storage, ensure the Customs Warehouse authorisation allows for entry of goods under Local Clearance Procedure. If using a third party Customs Warehouse, you will need to obtain confirmation to this effect from the Customs warehouse-keeper;
be authorised as an Authorised Consignee;
provide a transit guarantee for all goods released using CFSP LCP;
if you are using National Transit (CPCs 0611000 or 0611002) provide Customs with a monthly ‘end of transit notification’ (a list of all consignments, which have moved from the frontier to your premises during the month), by fax or e-mail. This will enable Customs to formally discharge the transit movements.

The end of transit notification must be submitted to the CFSP National Assurance Team (CNAT) by the fourth working day of the month following the month of arrival. The information must include the following;

trader name and address of designated premises;
date and time of the goods arrival;
DUCR;
written description of the goods;
quantity; and
value

Send details at the end of each month by fax or e-mail to the address below.

The CNAT on fax 0113 3894490 or e-mail

*Transit

ensure that an appropriate guarantee or guarantee waiver is in place for transit movements;
ensure goods using National transit reach the designated premises within three working days of the acceptance by CHIEF of the SFD. Additionally:

a)If goods are moving under separate means of transport to the same designated premises on the same day, one SFD can be submitted to cover the whole consignment;

b)If goods are moving on separate means of transport on the same day to different destinations, separate SFDs must be submitted for each transit;

c)If goods are moving on separate means of transport on separate days to the same destination, separate SFDs must be submitted for each transit.

nominate a competent person to examine all containers/vehicles when they arrive at the premises and ensure that any goods in the container/vehicle that do not agree with the details entered are investigated promptly. Any differences should be noted and the office of destination advised immediately. The office of destination will require notification of any excess quantities, shortages, substitutions, broken seals or other irregularities; and
keep in a secure area any goods not covered by the transit declaration which are discovered, until the local officer advises what to do with them.

If you are authorised as an Authorised Consignee to operate CT and NCTS with LCP to receive third country goods, which have been placed within the Community Transit procedures in another EU member state or EFTA country, and have arrived at the UK border under full CT, you must additionally:

use NCTS to communicate with Customs;
use a designated office of destination; and
inform customs as soon as the goods arrive at the approved premises.

*Temporary Storage

unload the goods as soon as possible after arrival, or when the local office requires you to do so and take accurate account of the goods using a competent nominated person;
allow only those persons necessarily engaged on the work to have access to the containers or secure vehicles during unloading. Do not allow any person who accompanied the container at importation to have access to the load compartment until unloading has been completed;
maintain adequate records to identify and control goods in Temporary Storage;
ensure that the goods remain in an unaltered state during the period of Temporary Storage; and
maintain a system for the declaration of goods on removal from Temporary Storage to ensure goods have been entered to a customs procedure within 20 days.

*Removal from Customs Warehousing using the Local Clearance Procedure (LCP)

be authorised as a Customs Warehouse keeper (Type A, C, D or E) with the provision to use LCP included in the warehouse authorisation; or
as an indirect representative (agent) or Depositor, declare goods for release from a Type A Customs warehouse that has provision for use of LCP included in the warehouse authorisation. To enable the release of the goods from a type A warehouse, you must first advise the warehouse-keeper of the particulars of the entry made into the local clearance record.

*Removal from Processing under Customs Control using the Local Clearance Procedure

be authorised for Processing Under Customs Control(PCC); and
have the provision to use LCP included in your PCC authorisation.

*Removal from Temporary Import using the Local Clearance Procedure

be authorised for Temporary Importation relief; and
have the provision to use Local Clearance Procedure included in your Temporary Importation relief authorisation

*Simplified Declaration Procedure to Free zone

be authorised as a Free zone operator, or enter goods to a Free zone
the provision to use Simplified declaration Procedures must be included in the Free zone authorisation
you must notify the Free zone operator/manager of entries to the Free zone

*Removal from Freezone using the Local Clearance Procedure

be authorised as a Free zone operator, or remove goods from a Free zone
the provision to use Local Clearance Procedures must be included in the Free zone authorisation
you must notify the Free zone operator/manager of removals if storing goods to a Free zone

*For an authorised party aggregating declarations across tax points.

You are authorised to aggregate supplementary declarations across tax points subject to the following conditions:

aggregation periods will be restricted to the following:

For customs goods:

First - tenth of month, message to be submitted within four working days of aggregation period end
eleventh - twentieth of month, message to be submitted within four working days of aggregation period end
twenty first - calendar month end, message to be submitted within four working days of aggregation period end.

For excise goods:

first- fourteenth of month, message to be submitted within four working days of aggregation period end
fifteenth - month end, message to be submitted within four working days of aggregation period end

aggregated messages must not exceed 3 Mb in size;
aggregated messages across the tax point must fulfil the aggregation rules published in the aggregation document(s) available on the Customs Internet site;
the tax point date shown on the aggregated message must be the last date in the aggregation period;
if any of the information changes (i.e. ADD, rates of exchange, duty rates) then a new message must be generated;

Use of this facility is dependent upon continuing stringent checks and controls being exercised within your system to ensure the aggregated declarations are fully auditable. If at a later date you are found to be non-compliant then the facility to use aggregation will be withdrawn.

*Use of customer’s deferment account for payment and security by an Indirect Representative

Authorisation is granted subject to compliance with the conditions detailed below. You must:

regularly monitor that your client’s security is adequate and take steps to inform your client that they need to amend/ increase the DAN/authority where it is found to be insufficient;
provide adequate security yourself as an indirect representative and monitor that it remains at a sufficient level at all times to cover any amounts not secured by your clients deferments; and

provide written details to Customs of each DAN you intend to use as security prior to its use. You must not use any DAN as security for your CFSP approval without holding prior written approval from Customs.

You are currently approved to provide security by the following means:

Account Holder’s name / Amount Secured
Deferment Account Number (DAN)
Guarantee Holder’s name / Amount Secured
Single Guarantee Reference

[to be completed by the officer for all types of security provided for the authorisation]

If at any time Customs feel that the customs debt is not adequately safeguarded the facility to provide security via your client’s DAN/ single guarantee will be withdrawn. You are reminded that under the terms of the Council Regulation (EEC) 2913/92, Articles 5 and 213 you remain jointly and severally liable for any customs debts that may arise in respect of this authorisation.

*For an authorised party using a third party service provider as a Direct Representative.

You have nominated <name and address of third party service provider> ...... ……. as your Direct Representative to prepare and submit your supplementary declarations to Customs.

It is your responsibility to:

provide the third party with information relating to all imports covered by the Simplified Procedures within each period and to ensure the accuracy and completeness of all source documents and other data;
ensure that any data processed on your behalf by the third party is accurate and complete;
notify Customs if you change Direct Representative/s; and
ensure that the third party:

- submits to Customs valid SDI/SDWs and ensures any failed messages are actioned, corrected and re-submitted by the fourth working day of the month following the creation of the tax point and/or base date i.e. the acceptance date of the SFD or the dated and timed entry into the Local Clearance record;

- archives and retains sufficient information to allow retrospective checks to be undertaken by Customs;

- allows Customs to audit their system including the archives of all declarations for four years from the date of their submission / transmission on request (other legislation e.g. VAT, Excise or Company taxation, may specify that this information must be kept for longer periods); and

- ensures the declarant on the SFD and SDI/SDW is the authorised legal entity.

N.B. Failure to do this may cause the declarant named on the SFD to be held jointly liable for the debt of the SDI/SDW.

The requirements set out above and in the attached letters may be varied by Customs without prior notice. However, where circumstances permit, any variation to the conditions would be introduced only after discussion with you and on an agreed date.

*the following applies if a Direct Representative will be maintaining the CFSP records:

the CFSP records will be maintained by [name of Direct Representative] at the following address:

<insert address where records will be maintained>;

[name of Direct Representative] will maintain the following records:

<insert details of the records the Direct Representative will maintain>;

you, as the authorised trader, will maintain [insert details of the records the authorised trader will maintain];

all records will be maintained for four years from the date of entry (other legislation e.g. VAT, Excise or Company taxation, may specify that this information must be kept for longer periods);

all records and supporting documentation will be made available for inspection by Customs;

all records will be produced within sufficient time of being requested by Customs; and

sole responsibility for the maintenance and accuracy of the records will remain with yourself as the authorised CFSP trader.

Failure to comply with the conditions and requirements of the authorisation will result in Customs taking action against you and may result in a Civil Penalty and/or the authorisation being suspended or withdrawn.

Signed ......

(Officer of HM Revenue & Customs).

The proprietor, a partner, director or the company secretary is to acknowledge receipt of this letter, the General Authorisation and Letter(s) in the following terms:

I/We* ...... hereby request that any (duty, taxes and levies) arising in respect of goods declared under the Simplified Procedure (and which are not otherwise paid or secured) be deferred under my/our deferment arrangements, DAN No...... * or secured under my single guarantee dated …...... or the single guarantee belonging to …...... * dated …......

I/We* …...... …….. (name of applicant) acknowledge receipt of the covering letter, the General Authorisation and Letter(s) dated …./…./…….. authorising the use of Simplified Procedures with effect from …./…./..…… and agree to abide by the terms and conditions of authorisation specified therein.

(Signature)…......

(*Proprietor, Partner, Director or Company Secretary)

Name in capitals …......

Date…......

*Delete as appropriate

If you do not agree with this decision there are 3 options available. Within 30 days of the date of this letter you can either:

•Send new information or arguments to me at the above address,

•Request a review of the decision by someone not involved in making the disputed decision. Your request must be in writing and should set out the reasons why you do not agree with the decision. Please write to: